Friends wrest Iceland from under noses of country's biggest supermarkets

Two of Britain’s best-known retail bosses have joined forces to pull off an audacious buyout of the Iceland chain from under the noses of the country’s biggest supermarkets.

The £1.45billion deal could be finalised this week.

Its founder Malcolm Walker will increase his stake in the business, while long-time friend and DFS Furniture founder Lord Kirkham will put in his own cash. Kirkham is set to take a seat on the board of the newly structured company.

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But staff at the chain, headquartered in Deeside, Flintshire, are expected to breathe a sigh of relief after Walker exercised a clause in his original shareholder agreement to match the highest offer.

Walker plans to continue his growth strategy – in contrast to bids that would almost certainly have seen the business broken up.

A deal will ensure that the Icelandic government, which controls existing majority shareholders Landsbanki and Glitnir banks, can repay most of the £2.3billion it has owed Britain since the 2008 collapse of Icesave bank.